2 Spurger women get 30 months for tax fraud - KTRE.com | Lufkin and Nacogdoches, Texas

2 Spurger women get 30 months for tax fraud

From the US Attorney's Office

BEAUMONT, Texas - Two East Texas women have been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Elizabeth G. Baliey, 57, and Patricia W. Sheard, 61, both of Spurger, Texas, pleaded guilty in March 2012 to being involved in a conspiracy to defraud the United States and were each  sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone.  The defendants were also ordered to jointly pay restitution in the amount of $437,994.00.

According to information presented in court, Bailey founded Gayle's Taxes in 1999 in Spurger, Texas and employed Sheard as a bookkeeper. An investigation by the Beaumont office of the Criminal Investigations Division, Internal Revenue Service revealed that the defendant Gayle Bailey and co-defendant Patricia Sheard operated a tax preparation service in Jasper County known as Gayle's Taxes wherein the defendants prepared numerous personal income tax returns for clients deliberately overstating numerous expenses and deductions causing the taxpayers to receive a larger refund or pay less tax than actually owed.  The clients were given a copy of an electronic return as it should have been filed whereas the defendant actually filed a false return with inflated deductions and expenses and diverted the inflated portion of the refunds into bank accounts controlled by defendant Bailey and co-defendant Sheard.  According to a factual basis presented in open court additional audits by the IRS relating to clients of the defendant Bailey's tax preparation business for tax year 2006 - 2008 revealed the defendants had caused the filing of over 100 false personal income tax returns and diverted the fraudulent refund portion to the defendants' bank accounts causing a loss of over $465,000.  A federal grand jury returned an indictment on Nov. 16, 2011, charging the defendants with federal income tax related charges.

Bailey was ordered to report to the U.S. Marshals Service on Sep. 5, 2012, to be transported to federal prison. Sheard was already detained.

This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

  • East Texas NewsMore>>

  • Breaking

    TxDOT urges motorists on east Lufkin loop to use caution in construction zone

    TxDOT urges motorists on east Lufkin loop to use caution in construction zone

    Monday, September 25 2017 11:16 AM EDT2017-09-25 15:16:13 GMT

    The Texas Department of Transportation is reporting heaving traffic on State Loop 287 EST In Lufkin as Drewery Construction continues with the project to re-surface that section of the loop.

    More >>

    The Texas Department of Transportation is reporting heaving traffic on State Loop 287 EST In Lufkin as Drewery Construction continues with the project to re-surface that section of the loop.

    More >>
  • Community rallies behind newborn after overcoming obstacles left behind by Hurricane Harvey

    Community rallies behind newborn after overcoming obstacles left behind by Hurricane Harvey

    Monday, September 25 2017 9:53 AM EDT2017-09-25 13:53:01 GMT
    (Source: Crystal Sepulvado)(Source: Crystal Sepulvado)

    When Crystal and Shane Sepulvado learned they were pregnant with their third child, they were ecstatic. But immediately Crystal knew something was not right, as relied on her experience working at an OB-GYN office. "When we looked at the ultrasound, we has seen fluid around her heart," Crystal said. Doctors later explained to the couple that their unborn child had a hole between her ventricles. With an early pregnancy, the couple was rushed to Houston,...

    More >>

    When Crystal and Shane Sepulvado learned they were pregnant with their third child, they were ecstatic. But immediately Crystal knew something was not right, as relied on her experience working at an OB-GYN office. "When we looked at the ultrasound, we has seen fluid around her heart," Crystal said. Doctors later explained to the couple that their unborn child had a hole between her ventricles. With an early pregnancy, the couple was rushed to Houston,...

    More >>
  • Defense questions investigator in third day of Henderson trial

    Defense questions investigator in third day of Henderson trial

    Friday, September 22 2017 7:19 PM EDT2017-09-22 23:19:49 GMT
    James Henderson's defense attorney, Stanley Sokolowski, started off the third day of court by questioning the state's witness, Investigator Bill Rulland. The cross examination lasted most of the morning and even a little into the afternoon. According to Investigator Michael Molnes, with the Houston County Sheriff's Office, Sokolowski attempted to discredit Brenna Theuer's witness testimony, as well as testimony from Robert Mobley.  The trial is expected to head into closing arg...More >>
    James Henderson's defense attorney, Stanley Sokolowski, started off the third day of court by questioning the state's witness, Investigator Bill Rulland. The cross examination lasted most of the morning and even a little into the afternoon. According to Investigator Michael Molnes, with the Houston County Sheriff's Office, Sokolowski attempted to discredit Brenna Theuer's witness testimony, as well as testimony from Robert Mobley.  The trial is expected to head into closing arg...More >>
Powered by Frankly